What happens to an employees medical expense reimbursement account when employment is terminated?
An employee who terminates employment mid-year is entitled to continue participation in the medical expense reimbursement account for the remainder of the plan year. The employee may increase pre-tax salary reductions prior to termination in order to complete annual contributions before termination. If the employee does not pay their full annual amount prior to termination, he or she will be given a Continuation of ERA Medical Expense Account Coverage form (ET-1518) to elect to pay out-of-pocket contributions up to the total annual election amount on a post-tax basis. The right to elect to continue coverage ends 60 days from the date the continuation notice is provided by employer to the employee. Continuation coverage will extend coverage through the end of the current plan year, including the grace period. Coverage may terminate earlier if the premiums are not paid when due. If continuation coverage is waived, the unused portion of the account is forfeited after all claims incurred p
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